Ripple Receives Regulatory Approval from Singapore’s Financial Authority
Ripple, a blockchain-based payments company, has received preliminary regulatory approval from Singapore’s financial authority to provide digital asset payments and token services in the country.
Ripple announced on June 22 that it had received the green light from the Monetary Authority of Singapore (MAS) to enable its subsidiary, Ripple Markets Asia Pacific, to expand its On-Demand Liquidity (ODL) service. ODL allows Ripple’s customers to transfer XRP internationally without the need for banks to act as middlemen.
The company applied for an institutional payment permit in accordance with Singapore’s Payment Service Act.
Ripple CEO Brad Garlinghouse applauded the Singaporean regulator for their “pragmatic, innovation-first attitude” towards cryptocurrency-related services, saying that the nation will serve as a “noteworthy entry point” for Ripple’s business activities in the Asia Pacific area.
Ripple’s head of legal, Stu Alderoty, remarked that Singapore’s “pioneering” position is providing a model for other regulators who are looking to create a “distinct taxonomy and licensing structure.”
Alderoty elucidated that the authorization extends Ripple’s customer base.
In 2022, Ripple saw a doubling of the personnel at its Asia Pacific headquarters as Singapore, the site of its base, witnessed a major portion of ODL transactions being processed within its borders.
On June 21, the Monetary Authority of Singapore (MAS) released a white paper entitled ‘Purpose Bound Money’, outlining standards for digital money services provided by fintech firms in Singapore.
Whilst Ripple had a relatively straightforward journey towards meeting Singapore’s regulations, this has not been the same in other countries.
Ripple’s lawyers have been hampered by the U.S. Securities and Exchange Commission since December 2020 when the agency filed a lawsuit against them, alleging that XRP – the token that powers the XRP Ledger – was offered as an unregistered security.
A decision concerning the widely-publicized case is anticipated to be issued in the upcoming months, as per Garlinghouse.
Ripple Collaborates with Central Banks Around the World
Could newly released documents potentially shift the outcome of Ripple vs. the SEC?
On June 15, Ripple collaborated with Colombia’s central bank, Banco de la República, to trial a Central Bank Digital Currency (CBDC) on its XRP Ledger.
The firm has also collaborated with central banks in Montenegro and Thailand, as well as numerous other regional banks and financial institutions globally.
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